India is on the cusp of a generational change. With a youth bulge and massive tax and regulatory reforms, the country is ripe for fruitful investment in industrial and logistic spaces. This is the reason why Skymettle has embarked upon the journey of becoming a premier warehouse and logistic park developer.
There are two giant leaps that India currently is taking, along with hosts of other progressive measures that make ever larger warehousing spaces the future of logistics. First, is the introduction of GST, and second, is the proliferation of e-commerce, driven by access to internet data by a great number of Indian citizens.
The introduction of GST has finally rendered India as one single market. No more do companies have to have smaller mini-warehouses across various states to minimise taxation.
GST has effectively subsumed the countless indirect duties and taxes that one paid into one single tax. The jurisdiction of economic activity matters less as long as the production, exchange or consumption occurs within India. This means that there is a direct incentive for most players to consolidate their industrial and warehousing spaces, since the penalties of consolidation as applicable in the previous tax regime are now over.
With e-retail, Indians are finally entering the digital age as the slick discounts of e-commerce players give brick and mortar retailers a run for their money. Every year, we hear of new sales benchmarks being set by broken by Amazon, Myntra and Flipkart.
They to pushing down the cost of service for the extremely competitive e-commerce players is to make economies in their logistic operations. This inevitably means larger storage and fulfilment spaces for better organisation of inventory and economies of scale. In other words, a further consolidation of warehousing space.
Skymettle is set to take advantage of these forces, along with the many progressive reforms being pursued by the Government of India, to build and organise India’s warehousing space, which is ready for exactly such an entry.
